Buying an RV can be an exciting and fulfilling experience. However, it’s important to set a budget before making any purchase to ensure that you don’t overspend and regret it later. In this blog post, we will discuss several considerations to make when setting your budget for buying an RV.
Determine your overall budget: The first step in setting a budget for buying an RV is to determine your overall budget. This includes all the money you have available for the purchase, including cash down payment and any financing or loans you plans to use.
Decide on the type of RV you want: The type of RV you want can greatly affect the price. Motorhomes and fifth wheels, for example, are typically more expensive than travel trailers and have added costs for engine maintenance of the RV or larger tow vehicle requirements. Determine which type of RV you want and how much you’re willing to spend.
Consider additional expenses: In addition to the purchase price of the RV, there are additional expenses to consider. These costs can add up over time and should be factored into your budget, as well.
- Sales tax & registration
- Insurance
- Extended warranty & GAP, if desired
- Maintenance & repairs including tires, service, winterization, etc
- Storage when you’re not traveling
- Campground reservation fees
- Gas and propane
Determine your financing options: If you plan to finance your RV purchase, determine your financing options and calculate the monthly payments. Make sure the monthly payments fit comfortably within your budget, and be sure to talk to your lender or dealer about your current credit rating and any downpayment expectations to get a better understanding of how those will affect your buying power.
Look for deals and discounts: Research deals and discounts on RV purchases, including end-of-year sales, holiday specials, and manufacturer incentives. These can help you save money on your purchase. For instance, we host our Factory Promo Sale each March to kick off the Spring camping season and feature a ‘Special of the Week’ throughout the year. Once you find a floorplan you like or a brand you most prefer, do your research and ask questions to be sure you’re getting a good deal and purchasing from a reputable dealer or private seller.
Consider the trade-in value of your current RV: If you’re upgrading from an existing RV, consider the trade-in value and how it can be applied towards your new purchase. Some customers will benefit from the tax savings in trading their RV while others can benefit from selling their current RV privately through apps like Facebook Marketplace, Craigslist, RVTrader, or a good old fashioned ‘For Sale’ sign in the front yard if they have a specific payoff amount they need.
Set aside a contingency fund: Finally, set aside a contingency fund for any unexpected expenses or emergencies. This can help you avoid overspending or going into debt if your RV needs unforeseen service or repairs, especially while traveling where roadside, or mobile repairs, are necessary.
In conclusion, setting a budget for buying an RV requires careful consideration of several factors, including your overall budget, the type of RV you want, engine maintenance for tow vehicles or motorized RVs, financing options, trade-in values, deals and discounts, and a contingency fund. By considering these factors, you can set a realistic budget and enjoy your new RV without financial stress.
